Cigarette Prices Jump Up to ₹55 per Pack After Excise Duty Hike

Cigarette prices have risen by at least ₹22 to ₹25 per pack of 10 sticks following the implementation of additional excise duty from Sunday, February 1, according to distributors.

Premium cigarettes measuring 76 mm in length are expected to see sharper increases, with prices rising by ₹50 to ₹55 per pack, depending on the brand, news agency PTI reported.

Although manufacturers have not yet announced revised maximum retail prices (MRPs), distributors have begun billing retailers for existing stock at higher rates, applying the new 40% goods and services tax (GST). As a result, old inventory is already being sold at increased prices.

Wholesale markets were closed on Sunday, but distributors expect fresh stock carrying the new MRPs to enter the market from Monday. Supplies with updated pricing are likely to be fully available by the end of the month.

“Some companies have put their stocks on hold and will release them only after billing under the new tax structure,” a stockist told PTI.

The All India Consumer Products Distributors Federation (AICPDF) estimates that there are about 8,000 to 9,000 stockists of cigarette and tobacco products nationwide.

Distributors have warned that higher prices could encourage smuggling and the spread of counterfeit products. AICPDF, which represents more than 4.5 lakh distributors and over 1.3 crore retail outlets, said steep taxes on legal tobacco products could hurt small, brick-and-mortar retailers already struggling against online competition.

“Tobacco products are among the few categories where small shopkeepers are still relevant. If this too is pushed into illicit networks, what will be left for honest retailers? This is not just about taxation—it is about survival,” said AICPDF president D. Patil.

Expected Price Changes

Distributors estimate that several popular brands will see significant increases:

• Wills Navy Cut (76 mm, 10 sticks): From ₹95 to around ₹120

• Wills Classic, Gold Flake Lights (84 mm, 10 sticks): From ₹170 to ₹220–₹225

• Classic Connect Slim (97 mm, 20 sticks): From ₹300 to about ₹350

New Tax Structure

From February 1, additional excise duty on cigarettes and tobacco products, along with a health cess on pan masala, has come into effect. These levies replace the earlier 28% GST plus compensation cess on “sin goods.”

Under the new system:

• Non-filter cigarettes (up to 65 mm): ₹2.05 per stick

• Filter cigarettes (up to 65 mm): ₹2.10 per stick

• 65–70 mm cigarettes: ₹3.60–₹4 per stick

• 70–75 mm cigarettes: About ₹5.40 per stick

• Non-standard designs: Up to ₹8.50 per stick

Most popular cigarette brands do not fall under the highest slab.

Parliament approved the new excise duty and health cess on tobacco and pan masala in December last year.